Generations over the years are given a variety of names, but the ones given to the current generation is called Generation Z. Generation Z is the group of people born between the late 1990s to early 2010s. These are the people who are to make our future and would soon create a new world! For them to do so, they need to have the utmost knowledge about the world and things they like. They need to be prepared for whatever situation that arises. Thus, they need to start with their financial planning at a young age.
For students or the gen Z to begin financial planning, they need to find out how and what to do to invest, or earn money, or gain profits. They need to be financially literate but they don't get that via school. However, a lot of different courses are available for them to join and gain knowledge about the same. But we can't just force students to start investing or have information about finance and their future with it. They must understand why they need to plan. And that is why we are here to explain that!
Financial Planning has a lot of different reasons to be necessary. A few of them are mentioned below.
1. Future Preparation
Honestly, this seems to be the most important reason as starting to earn money at a young age is sure to make you successful later on in the future. And by successful, we mean to have enough to have a life and save for family. If you are studying, you can also save for future exams and course material which isn't cheap. Most people don't plan and end up going broke, thus preventing you from being prepared.
2. Investment Plans
The first thing that comes to mind to people who know the value of money is saving and looking to invest in forex, stocks, crypto and other forms rather than spending it all up. Saving your money is a step further in future planning plus can be extremely useful during emergencies. By investing money in shares, bonds, real estate, and so much more, you get greater returns if invested correctly and are sure to have money to rely on for later.
3. Financial Independence
Once you start planning your financial ladder, you can do whatever you want. Once you start earning, you don't have to ask your parents for help or take loans. It is important as you can get off all your debts and be free from paying that. You can also buy what you like with your own money, and the feeling of joy from that is immeasurable. You can then pay for your education and living all by yourself.
Financial Planning is not only important for students and the new-gen; it is also extremely important for the millennials, gen Y, and the baby boomers. But the reason we stress on Gen Z to learn financial planning is so that they can be successful from a young age; they can live their life the way they want and enjoy life without the stress of being broke or not having enough. They have the drive and energy to take over the world, and thus, they need to be prepared with everything that they can!